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ITR Filing 2024: Know who can and cannot file income tax returns using ITR-1 this year
June, 18th 2024

The tax filing season is upon us. Before you file your return, make sure to pick the right form. Using the wrong form means your return will be marked as defective.

For most salaried people, the basic form is ITR-1. This form is for individuals with a total income up to Rs 50 lakh from salary, one house property, and other sources like interest income.

However, not all salaried individuals can use ITR-1. Here are the scenarios where you cannot use ITR-1:
  • Your total income is over Rs 50 lakh.
  • You have income from more than one house property.
  • Your agricultural income is over Rs 5,000 per year.
  • You are a director of a company.
  • You held unlisted equity shares during the financial year.
  • You want to claim deductions against "income from other sources" (except family pension). This includes winnings from horse racing, gambling, or lotteries.
  • You have assets or signing authority in any account outside India or income from any foreign source.
  • You received dividend income taxable at special rates (e.g., over Rs 10 lakh from Indian companies).
  • You have taxable capital gains (short-term or long-term).
  • You claimed relief for foreign tax paid or double taxation under section 90, 90A, or 91.
  • You have income under the head of business or profession.
  • Non-residents and residents not ordinarily resident cannot use ITR-1.


So, what should you do if you fall into these categories?

 

A resident salaried individual with income only from salary and less than Rs 50 lakh a year can file ITR-1. If you also have income from capital gains or agricultural sources, you need to use a different ITR form.

For instance, Alok Agarwal from Deloitte India explains that if you are salaried and have agricultural income over Rs 5,000, you need to file ITR-2 instead of ITR-1, assuming other conditions for ITR-2 are met.

Archit Gupta from Cleartax.in states that those who can't file ITR-1 usually need to file ITR-2 or ITR-3, depending on their specific conditions. If you have capital gains, use ITR-2. If you have income from more than one house property, also use ITR-2. For business income, use ITR-3. Note, you cannot file two ITR forms.

 

ITR filing last date for Financial Year 2023-24 (AY 2024-25) is July 31, 2024. However, if you miss filing within the due date, you can still file a belated return before December 31, 2024.

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